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Sanyo Shokai (TSE:8011) Degree of Operating Leverage : 110.87 (As of Aug. 2024)


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What is Sanyo Shokai Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sanyo Shokai's Degree of Operating Leverage for the quarter that ended in Aug. 2024 was 110.87. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Sanyo Shokai's Degree of Operating Leverage or its related term are showing as below:

TSE:8011's Degree of Operating Leverage is ranked worse than
96.85% of 1016 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.125 vs TSE:8011: 110.87

Sanyo Shokai Degree of Operating Leverage Historical Data

The historical data trend for Sanyo Shokai's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Sanyo Shokai Degree of Operating Leverage Chart

Sanyo Shokai Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Feb21 Feb22 Feb23 Feb24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -112.72 -7.09 -62.63 1.67 22.24

Sanyo Shokai Quarterly Data
Sep19 Dec19 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.03 -1.59 22.24 34.18 110.87

Competitive Comparison of Sanyo Shokai's Degree of Operating Leverage

For the Apparel Manufacturing subindustry, Sanyo Shokai's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sanyo Shokai's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sanyo Shokai's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Sanyo Shokai's Degree of Operating Leverage falls into.



Sanyo Shokai Degree of Operating Leverage Calculation

Sanyo Shokai's Degree of Operating Leverage for the quarter that ended in Aug. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 3026 (Aug. 2024) / 2426 (Aug. 2023) - 1 )/( 61100 (Aug. 2024) / 60964 (Aug. 2023) - 1 )
=0.2473/0.0022
=110.87***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Sanyo Shokai  (TSE:8011) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Sanyo Shokai Degree of Operating Leverage Related Terms

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Sanyo Shokai Business Description

Traded in Other Exchanges
N/A
Address
6-14 Honshiocho, Shinjuku-ku, Tokyo, JPN, 160-0003
Sanyo Shokai Ltd is a Japan-based company, engages in the manufacture and sale of textile products. It is involved in the business of manufacturing and sale of men's clothing, ladies and accessories sales of products at department stores, specialty shops, directly managed stores nationwide. It is also engaged in the business of the lease and rent of real estate properties.

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